Checking Account

Checking Accounts with Interest Rates

A checking account is a bank account that allows customers to deposit and withdraw funds while having the protection of FDIC insurance. Checking accounts allow account holders to write checks as a form of payment instead of cash. Account holders also receive ATM/debit cards to withdraw and deposit money from ATMs usually for free if you use your banks ATMs.

Almost every bank will offer a checking account to their customers. Some banks require a minimum deposit that varies from bank to bank. Most banks will require a form of ID and proof of address if you don’t already hold an account with them. Most banks will offers student checking accounts that have little to no fees for low income students. Some checking accounts will yield interest if your checking account falls into certain balance ranges. Here are some of the checking accounts that Bromoney has reviewed:

First Community Bank 4.01% Rewards Checking Account

Get 4.01% APY from First Community Bank.
United Federal Credit Union 6.01% APY Interest Checking Account

Get 6.01%from United Federal Credit Union.

As a checking account owner, it’s your responsibility to keep track of your funds. Banks will issue monthly statements of your banking activity, but you need to stay on top of your funds on a daily basis so you know what your cash flow is like. You should never write checks that can’t be cashed immediately. If someone attempts to cash a check for which you don’t have the available funds, that is known as a “bounced check”. The result of a bounced check is usually a hefty fee from your bank, so you should take care to never bounce a check on your account. Not only that, but you will have to setup another payment for the recipient of your bad check. Some banks will issue the payment, and post a negative balance on the check writer’s account. This is called overdraft. An overdraft on your account typically also comes with a large fee.

To keep track of your funds you should check your monthly statements, keep track of your funds by checking your balance at ATMs, and checking online or over the phone for your balance total. If you’re thinking about opening a small business checking account it might be harder to find free checking, but they do exist.

As long as the account holder stays on top of their balances, checking accounts are both convenient and safe. A savings account is useful for larger sums of money to collect interest on, but a checking account is useful for money that needs to be spent and moved around. If you’ve been reported to the ChexSystems database you may need to open a second chance checking account.